Santos happy as GLNG project remains on track for 2015

THE Santos-led GLNG project is now 45% complete and remains on track for first LNG in 2015.

Santos chief executive officer David Knox said construction on the Gladstone project was pleasing.

In Santos' fourth quarter report released on Thursday, Mr Knox said a significant milestone had been achieved for the GLNG underground gas transmission pipeline with the arrival of the last shipment of pipe in Queensland, and the start of pipeline burial.

All 420km of pipe for the gas transmission pipeline has been delivered to pipe yards in Gladstone and Port Alma.

A total of 108km of the mainland pipeline right-of-way has been cleared and graded, with 94km of pipe strung and 35km of pipe welded.

In December, pipeline burial in the Arcadia Valley began, which is the final step before rehabilitation works are carried out, the report said.

For the marine crossing, sealing of the access track started, and site pad and launch shaft preparation is continuing.

A tunnelling machine is being commissioned in Brisbane, and tunnel concrete segment moulds have been prepared. Segment fabrication began in early January.

On Curtis Island, construction of the two LNG trains and supporting infrastructure continues to progress.

Concrete wall lifts are underway for both LNG tanks, erection and welding of the temporary outer support brackets for the steel roof of LNG tank B has been completed and installation of roof plates has begun.

Sanctioned in January 2011, GLNG includes the development of CSG resources in the Bowen and Surat Basins in south-east Queensland, construction of a 420km underground gas transmission pipeline to Gladstone, and two LNG trains with a combined nameplate capacity of 7.8mtpa on Curtis Island.

The project has an estimated gross capital cost of US$18.5 billion from final investment decision to the end of 2015.